Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 16)
How does a business determine its trade payables period?
Trade payables / Cost of sales * 365 days
Cost of sales / Trade payables * 365 days
Trade receivables / Credit sales * 365 days
Credit purchases / Trade payables * 365 days
Erläuterung
The formula correctly calculates the trade payables period.